Study On Trade Barriers China's Tires Encountered In Export

China's tire production has a history of more than 70 years since 1935. Through all these years'development, China has become the largest tire producer in the world, accounting for a quarter of the whole tire output. A complete tire industry system has matured with a wide variety of products and specifications as well as series of original and innovative technical achievements. In recent years, with the strong support of the government policy, the rapid growth of automobile industry and the fast development of transportation system, China's tire industry is entering the stage of full development:the industry scale is enlarging, the product structure is optimizing, the technology is maturing, the investment is growing, and the foreign trade is expanding. In 2010, China's tire exports achieved a double breakthrough: the trade value surpassed US＄10 billion, reaching US＄10.6 billion, and the export volume broke 0.2 billion tires, reaching 0.23 billion tires①.However, the acceleration of the global trade liberalization brings not only opportunities to China's tire industry, but also tremendous challenges. In the international trade, trade barrier, has become the effective and most often used tools of some countries to protect their national markets and industries. Our traditional industries have become victims of trade barriers, and the tire industry in no exception.In recent years, more than 10 countries have initiated over 20 cases of ant-dumping, countervailing and special safeguards into our tire products. Meanwhile, there are increasingly more technical barriers to trade and sanitary and phytosanitary measures against our tire products. Moreover, the tire export is experiencing the green trade barriers and intellectual property barriers.As the largest tire producer and exporter, China is increasingly influenced by trade barriers, which put a restriction on the export growth and healthy development of our tire industry. Under such a context, research to the trade barriers our tire products encountered when exports to other countries is not only of important theoretical significance but of great practical significance. At present, studies on domestic and foreign trade barriers mainly focused on:(1) theoretical definition and extension of different barriers, such as trade remedies, technical barriers to trade, green trade barriers, etc.; (2) introduction and review on the WTO agreement on trade barriers and the situation of trade barriers initiated by developed countries; (3) citation and observation on the relationship between trade barriers and international trade; (4) analysis on specific cases involved or particular trade barriers and then provide suggestions. These researches offer much useful reference to the practices of China's tire export. However, these studies haven't formed an integrated theoretical system that can be used to fully explain China's tire industry encountered in trade barriers, and they still need to be improved and strengthened.The paper starts from a general description on the status quo of China's tire industry, pointing out the main problems China's tire industry is facing in international trade, and as one of them, the increasing trade barriers associated investigations have a significant influence on China's tire export. Then, on the basis of the analysis of particular trade barriers China's tire encountered when export to foreign markets, the characteristics, reasons, and impacts are discussed. Next, the paper describes the prospect of the tire industry development in the future and provides several countermeasures and recommendations. The paper try best to be systematic and specific in analyzing the problems our tire export encountered in trade barriers, hoping to offer a good reference and supplement to this topic. The paper is divided into six chapters.Chapter one is introduction, briefly explaining the development pattern of global and China's tire industry, the situation that China's tire involved in trade barriers, the literature studies on trade barriers, and the significance, structure and methods of this thesis.Chapter two gives a comprehensive overview on China's tire industry. In this chapter, the author firstly presents the development and exportation condition of China's tire industry, then points out the main problems it is facing in international trade, including the low level competition among manufacturers, the excessive concentration of export markets, the overly rely on international raw material market, and the easily involvement in trade barriers investigations. This lay a foundation for the further analysis of trade barriers related problems.Chapter three discusses the trade barriers China's tire products encountered in recent years, including trade remedies, technical barriers to trade, green trade barriers and intellectual property trade barriers. The trade remedy includes anti-dumping, countervailing, and specific safeguard measure. This chapter analyzed the problems of trade barriers we are facing in tire export based on the particular cases our tire products involved. By classification of the trade barriers investigations against our tires, we can find that they have certain characteristics, that is, trade remedy investigations (most are anti-dumping investigations) are the main form of trade barriers, developing countries are the main initiators while developed countries increasingly join the force, trade barriers are undergoing a structural change-from mere anti-dumping investigations to double investigations of anti-dumping and countervailing to new trade barriers with the development of technology, and the products involved shift from tires with low add value to those have high add value.Chapter four explains the reasons that why we frequently involved in investigations and the impacts they bring to the whole industry. China's tire industry, in fact, has become one of the biggest victims suffering from trade barriers, the reasons mainly lies in the following aspects:the extensive expansion of our tire industry, the irrational structure of our tire export and the prevalence of trade protectionism. To summarize, there are mainly four impacts of trade barriers:high punitive duties cause export restriction; technology requirements raise the cost; trade barriers investigations prone to set up chain reaction; the punitive measures result in imbalance of domestic industrial structure and threaten our social stability.Chapter five describes the prospects of the industry. As the expanding of our trade scale, the tire industry will continue a sustained and balanced growth. Besides, under the guide of the government policy, the industry system will develop towards deeper refinement. Moreover, in the trend of green and low carbon, only by transit from price competiveness to technology strength and develop energy-saving and environmental-friendly products following the trend can China's tire survive the fierce competition and gain a healthy growth.The last chapter aimed to seek a series of effective measures from the government layer, the industry layer and the enterprise layer, based on the analysis of self shortage and outside threats in the process of tire exports and combined with the reasons we frequently encounter trade barriers.Combined with theoretical knowledge of international trade and trade barriers, new, systematic and comprehensive data is used to support the study on kinds of trade barriers China's tire products encountered in trade exports. The paper gives a good analysis and summary to the problems China's tire industry involved in trade barriers, and this provides a helpful reference for our tire enterprises to avoid the risk of trade barriers and to stabilize the growth of tire export. However, it can not be denied that there are some limitations in this thesis. As the influence of traditional trade barriers is weakening, in the future, new trade barriers, especially TBT and green trade barriers will become new factors that impede the development of China's tire industry. Due to the space and time, analysis of new trade barriers is not that systematic and profound. In the forward research on trade barriers China's tire encountered, the author can pay more attention to these new trade barriers. The low cost and low price dominated concept of China tires is gradually changing. Due to the controlling of energy by developed countries, frequent involving in international trade barriers, and the strengthening of technical and environment standards, the tire enterprises in our country are moving to the high cost time, which will make China tires lose the advantage of low cost of tire production. Therefore, China's tire companies have to keep improving their strength and competitiveness. Only change from Chinese manufacturing to China creation can our tire exports get out of the dilemma and stabilize the export growth, and thus occupy an irreplaceable position in the international markets.